GameStop/Reddit vs. Big Financial

[Dean C.]

I may have autism but I don't have anywhere near enough autism to understand WSB.

It makes borderline no sense, but if you watch it closely you can make some cash occasionally. They have been preaching this stock since at least July of last year. Looks like AMC and Blackberry might be getting in on the craziness too.

That being said I am not holding till $1000 $700 is my cash out number

 

[ghuns]

Regulations will be put in place to prevent this kind of thing happening in the future.

Billionaire, short selling, hedge fund vultures will demand they not be exposed to the threat of losing billions to a bunch of nerds EVER again.

 

[jamil]

GameStop. A company that has been retreating on the trunk of bankruptcy for about 10 Years, has been floundering under terrible retail management for the past decade or more.

it surges around 300%?! Yeah right. This is just as reliable as China in the stock markets in a free market.
(Print more paper!)

use your critics thinking. This all stinks to high heaven.

I know a guy who retired nicely because he invested in China long term. China isn't reliable. Their long term ascension in the market has been a reliable trend.

But anyway, as far as the gamestop thing, this is really getting absurd. Even ****ing Blockbuster. Blockbuster! This would be hilarious if it weren't so absurd. The people trading millions in stock every day will probably push for some serious regulation and that regulation will impose some nonsense rules on individual investors who don't engage in childish games like this.

Bankrupt Blockbuster Joins Reddit-Inspired Retail Rally

The latest nostalgia stock to jump on the Reddit rally is BB Liquidating Inc., the final remnant of bankrupt video-rental company Blockbuster.

www.bloomberg.com

****ing Blockbuster!

 

[ghuns]

...The people trading millions in stock every day will probably push for some serious regulation and that regulation will impose some nonsense rules on individual investors who don't engage in childish games like this...

I don't pretend to fully understand what's going on here. But aren't the billionaire hedge fund dudes who are short selling 140% of the available stock the ones engaging in a childish game?

 

[rooster]

I don't pretend to fully understand what's going on here. But aren't the billionaire hedge fund dudes who are short selling 140% of the available stock the ones engaging in a childish game?

I saw someone this morning say something to the effect of “ why is CNBC acting like we shouldn’t be allowed to risk 100% when the hedge funds have exposed themselves to infinite risk”

refusal to realize these losses at a reasonable level is gonna crash the whole market as they liquidate good stocks to pay for the losing bets. Gamblers fallacy at a huge economy wrecking scale.

 

[rooster]

Regulations will be put in place to prevent this kind of thing happening in the future.

Billionaire, short selling, hedge fund vultures will demand they not be exposed to the threat of losing billions to a bunch of nerds EVER again.

Chamath explained why that can’t happen and much more in his interview yesterday.

 

[rooster]

Robinhood,trading 212 and several other brokerages are no longer allowing people to buy GME, AMC and NOK. This market is no longer free. This is clear manipulation to allow the shorts to close their positions as cheaply as possible by allowing them to be the only buyers in the market.

 

[OakRiver]

 

[ditcherman]

Robinhood,trading 212 and several other brokerages are no longer allowing people to buy GME, AMC and NOK. This market is no longer free. This is clear manipulation to allow the shorts to close their positions as cheaply as possible by allowing them to be the only buyers in the market.

Can the redditors go another direction to keep buying? Would the big “reputable” houses even let them in?

 

[Dean C.]

Can the redditors go another direction to keep buying? Would the big “reputable” houses even let them in?

The repercussions of this are going to be HUGE

 

[avboiler11]

 

[Ark]

Robinhood,trading 212 and several other brokerages are no longer allowing people to buy GME, AMC and NOK. This market is no longer free. This is clear manipulation to allow the shorts to close their positions as cheaply as possible by allowing them to be the only buyers in the market.

Saw the reddit thread. Top comment is links to filing SEC complaints.

 

[gregkl]

Thanks. This helps me understand it better. Just so I understand, these hedge funds borrowed a bunch of stock hoping the price would go down. These other guys started buying up stock. Does the act of buying up the stock, automatically make the value go up? And when the hedge fund went to "cover", they lost big. And the act of buying up all the shares they "shorted", drove the price even higher. This resulted in the other guys (redditors) to realize a huge gain on the shares they bought outright, no short. Provided they then sell. Which would cause a drop in the stock value?

Am I starting to get the picture?

 

[Ark]

Chamath explained why that can’t happen and much more in his interview yesterday.

That is one of the most infuriating interviews I've heard in a long time. CNBC is bought and paid for by exactly the same kind of dickholes that WSB is going after, and the host is so mad that the unwashed normies on a freakin' meme site have beat them at their own game.

 

[jason867]

I think you're right. Also, to answer your question, it's just basic economics: if demand goes up but inventory stays the same, then the price usually goes up. And the inverse: demand goes down, price goes down.

Just like with primers.

Thanks. This helps me understand it better. Just so I understand, these hedge funds borrowed a bunch of stock hoping the price would go down. These other guys started buying up stock. Does the act of buying up the stock, automatically make the value go up? And when the hedge fund went to "cover", they lost big. And the act of buying up all the shares they "shorted", drove the price even higher. This resulted in the other guys (redditors) to realize a huge gain on the shares they bought outright, no short. Provided they then sell. Which would cause a drop in the stock value?

Am I starting to get the picture?

 

[smokingman]

GameStop Corporation Common Stock (GME) Real-Time Quotes

GameStop Corporation Common Stock (GME) Real-time Stock Quotes - Nasdaq offers real-time quotes & market activity data for US and global markets.

www.nasdaq.com

$ 400.27 currently.
$347.51 at close yesterday.

It was trading for less than $6 for most of the month.

 

[JTScribe]

That is one of the most infuriating interviews I've heard in a long time. CNBC is bought and paid for by exactly the same kind of dickholes that WSB is going after, and the host is so mad that the unwashed normies on a freakin' meme site have beat them at their own game.

They'll make sure it doesn't happen again ... just like they did with Trump's election. How dare the great unwashed believe they are actually free!

 

[OakRiver]

Thanks. This helps me understand it better. Just so I understand, these hedge funds borrowed a bunch of stock hoping the price would go down. These other guys started buying up stock. Does the act of buying up the stock, automatically make the value go up? And when the hedge fund went to "cover", they lost big. And the act of buying up all the shares they "shorted", drove the price even higher. This resulted in the other guys (redditors) to realize a huge gain on the shares they bought outright, no short. Provided they then sell. Which would cause a drop in the stock value?

Am I starting to get the picture?

Thank you. The picture was one I found on Twitter.

I think you've pretty much got it. The hedge fund thought that the stocks would go down, so borrowed stock to flip and turn a profit on. Reddit users started to buy up the stock, increasing demand and driving up the cost. The hedge fund, having sold the borrowed stock, now have to buy new stock to return to whomever they borrowed it from, and they had to pay out a lot because the stock increased.

For gun owners, a similar story might be:
Johnny has 5 boxes of 9mm, which cost him $75 when he bought it
Malcom asks Johnny for his ammo for a range trip, and agrees to return 5 boxes of ammo. With the price of ammo going down, Malcom budgets $50 to replace the ammo he will shoot
2020 panic buyers buy up all the ammo, and prices rise. Malcom now has to spend $175 to replace the ammo

 

[OakRiver]

The repercussions of this are going to be HUGE

Yup. The high priests of finance will make sure that the masses no longer have ready access to the markets, and will have to go through a long convoluted process to give the market time to react and minimize their loses.

 

[gregkl]

I'm too old for these games/gambles. Or is it risk averse? I'm a car guy. I have been in this industry my whole life. I'm going to dive into EV's. I am confident that is the future and hopefully with some due diligence and luck I can build up a little nest egg in the next 6-8 years which is when I plan on retiring. If I start soon, hopefully it will grow modestly over that time period.

Batteries. Charging infrastructure, actual vehicles.